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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Sun Nov 03, 2013 10:56 pm 
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A serious question :

What if I place a very large deposit in a Paddy Power account (say over 100k), obviously I'm not going to get any interest on the money, but would the cash be safe in the event of the Gov't making a call on bank deposits ?

I presume it would but I'd like to tease it out on here. Remember a bank deposit will only return about 1.1% net, currently. I think the money is safer in PP provided I don't use it for indiscriminate gambling. Also, I can make withdrawals via PP shops whenever I require cash and they don't charge a fee for the process. :idea: .

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Sun Nov 03, 2013 11:28 pm 
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wawwa wrote:
A serious question :

What if I place a very large deposit in a Paddy Power account (say over 100k), obviously I'm not going to get any interest on the money, but would the cash be safe in the event of the Gov't making a call on bank deposits ?

I presume it would but I'd like to tease it out on here. Remember a bank deposit will only return about 1.1% net, currently. I think the money is safer in PP provided I don't use it for indiscriminate gambling. Also, I can make withdrawals via PP shops whenever I require cash and they don't charge a fee for the process. :idea: .


Just like those people who had all that safe money in Full Tilt Poker?

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Sun Nov 03, 2013 11:28 pm 
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Rimbaud wrote:
Good chance property/share prices will rebound over the medium term


[citation needed]

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Sun Nov 03, 2013 11:36 pm 
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Eschatologist wrote:
Rimbaud wrote:
Looks like the safest place for it is in property or big pharma shares and to think I used to laugh at my Grandfather and his mistrust/dislike of banks.

Surely the risk of (say) a 20% haircut on state-guaranteed savings (which would cause a huge political shitstorm) is lower than the risk of losing 20% on property or pharma stocks (which would result in no one batting an eyelid)?

Also, I'm not sure I'd want to be holding property in a country where there are savings haircuts and capital controls. How is Cypriot real estate doing?

That's my take on it. I have a giant wedge in Irish banks. If they grab 10% of it I'll still be ahead, because I did the sensible thing and locked in high rates last year. At 20% I'll be taking a loss, but less than what I would have risked with any other approach. I'd definitely prefer a raid to creeping inflation which could completely kill me over time. Obviously my preferred option would be for the thieving f*ckers to keep their grubby paws off it altogether. :D

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Sun Nov 03, 2013 11:50 pm 
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Mantissa wrote:
wawwa wrote:
A serious question :

What if I place a very large deposit in a Paddy Power account (say over 100k), obviously I'm not going to get any interest on the money, but would the cash be safe in the event of the Gov't making a call on bank deposits ?

I presume it would but I'd like to tease it out on here. Remember a bank deposit will only return about 1.1% net, currently. I think the money is safer in PP provided I don't use it for indiscriminate gambling. Also, I can make withdrawals via PP shops whenever I require cash and they don't charge a fee for the process. :idea: .


Just like those people who had all that safe money in Full Tilt Poker?



I think PP is a much safer bet than full tilt poker for my purposes. Also, when I logged back in just now I got an ad for "Safety Deposit Boxes" somewhere in Dublin (still prefer PP).

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Mon Nov 04, 2013 12:24 am 
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Surely you'd be better with a TD Waterhouse account if you want to give your money to an unguarateed institution?

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Mon Nov 04, 2013 12:35 am 
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If you put it in the governments 'Solidarity' bonds - would they really dare to take it? Are they really that stupid? Ok - I know.

The other possibilitY I have thought of is a stock-broking account - how would that be treated?

EDIT: and another thought - bank drafts - (or cash) in a safe deposit box These guys cost €300 per year - http://merrionvaults.ie/prices/


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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Mon Nov 04, 2013 1:22 am 
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This is the same piece I linked to last month
viewtopic.php?f=4&t=61044&hilit=bailout&start=27

There's loads of offshore options for your money -- HSBC Premier is excellent. All you need is to find one outside the Eurozone.

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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Mon Nov 04, 2013 1:23 am 
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metalmike wrote:
If you put it in the governments 'Solidarity' bonds - would they really dare to take it? Are they really that stupid? Ok - I know.



No - not if they're sovereign debt - which presumably they are. They won't default on them until long after they haircut deposit holders.

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Profits = Investment – Household Savings – Government Savings – Foreign Savings + Dividends

(i.e. company profits are directly fed, in part, by government deficits)

BANKS DON'T LEND RESERVES
As confirmed by the Bank of England


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 Post subject: Re: IMF calls for a tax on household savings
PostPosted: Mon Nov 04, 2013 8:44 am 
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Daniel Plainview wrote:
metalmike wrote:
If you put it in the governments 'Solidarity' bonds - would they really dare to take it? Are they really that stupid? Ok - I know.



No - not if they're sovereign debt - which presumably they are. They won't default on them until long after they haircut deposit holders.

That makes it sound like a deposit haircut is a tax on being stupid enough to give money to a risky institution. If that's the case, will such a haircut only apply to deposits with particular institutions that get into trouble, rather than a grab from all deposits in all banks trading in Ireland?

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